In a recent SupermarketNews article, Evins explains that grocers face the dilemma of keeping their margins low by spending less while still delivering quality products. More labor requires higher costs, but without the additional attention to fresh foods, products will not be up to standards.

The solution: Grocery retailers should leverage digital resources and process improvement to more easily monitor, plan and execute their efforts.

“Automation of simple tasks can help ensure manpower is used in more critical roles rather than routine monitoring and conditions management.”

The article goes on to present ways in which digital information can help supermarket management better-understand what products are most popular and what are consistently undersold, as well as which processes are the best candidates for streamlining. They would then be able to better manage some of the more challenging yet vital areas of the business, such as the fresh foods and perishable sections, which typically comprise up to 50 percent of sales and more than 60 percent of profits.

In addition to leveraging technology to improve operational efficiency, Elvins also stresses the importance of using data to better-understand customer preferences, and to drive the customer experience (CX).

“Stores must differentiate from online by taking advantage of consumer senses, drawing consumers into the store, and using experiences to convert the sale,” he writes.

In-store events like wine tastings, and providing local product representatives and vendors throughout the store to offer expert opinions, are often popular offerings that aren’t possible online, thus creating greater brand-and-store loyalty as well as a competitive edge over online retailers.

In an effort to more easily ramp-up online shopping , some supermarkets have opted to partner with third-party service-providers like Instacart, Postmates and Google Express.

This option can make sense, especially when you consider the various processes involved and the time it might take to create and fine-tune them.

This perspective was expressed in a recent Retail Dive article, which stated, “With deep knowledge of consumer analytics and logistics, these providers can quickly get products into the hands of customers — sometimes, in as little as one hour.”

But the article also raised a few good questions about brand loyalty and customer relationships…

A recent article, published by Customer Experience Matters, shared results of a survey that included Net Promoter® Scores (NPS®) on 315 companies across 20 industries based on a study of 10,000 U.S. consumers.

Supermarkets ranked sixth out of twenty, with an average score of 39.

The Top 10 and their average scores were:

Auto Dealers: 48

Software: 41

Investment Firms: 40

Computers & Tablets: 40

Appliances: 40

Supermarkets: 39

Insurance Carriers: 37

Airlines: 37

Hotels :37

Retailers: 35

In case you are curious, the bottom scoring industries were health plans (24), Internet service providers (16), and TV service providers (11).

It’s nice to see that supermarkets in general are above-average when it comes to customer service and satisfaction!

A recent SupermarketNews article shared details and some great photos of a shared dining solution being presented within a Whole Foods store in California.

According to the article, Mendocino Farms, a family-owned business specializing in “an elevated dining experience,” opened its first location within a Whole Foods Market in Tustin, California. The 140-seat shared dining room within the store includes a bar with craft beer and wine, and the grocer’s typical prepared foods.

Whole Foods has been adding outside local restaurant operators to its food line up in stores across the country, the article explained.

The grocery chain’s relationship with Mendocino Farms also included a minority investment that will help the better-sandwich concept grow.

To move to a system of continuous improvement requires that organizations develop the right mindset and use the right language and tools every day, in all their activities. That is a major culture change for most organizations.

But once people know what to work on, the question becomes which tools and methods will help you achieve your goals.

With our vast experience in a variety of industries, cultures and countries, we work with you to identify those methods and teach you to build your skills so that you can apply those methods and tools to future problems and opportunities.